How much do you need to save each month to retire as a millionaire?

Eva Osborne

Many people dream of retiring as a millionaire. While it may sound far-fetched, experts at the National Pension Helpline have said that, with the right strategy, it is within reach.

According to the latest figures, the average pension savings across all age groups in Ireland is €111,000.

While that might sound like a good start, it is quite a way off from the €1 million mark.

Pension experts at the National Pension Helpline have revealed the amount you need to save each month, according to your age, to retire with seven figures at the age of 65.

To retire at 65, with an average pension return rate of around six per cent each year, if you start saving at 25 you will need to contribute around €400-€450 a month to reach €1 million by retirement.

For those starting at 30, the monthly contribution increases to about €550-€600. If you wait until you are 40, that figure jumps to €1,000-€1,100 per month.

For anyone starting in their 50s, they will need to save a hefty €2,100-€2,200 every month.

Financial expert James Dorrian, said: "It’s certainly possible for someone starting late, to retire as a millionaire, but it will require careful planning, disciplined saving, and smart investing.

"The key is to max out your pension contributions as much as possible while you can.”